GoGold Reports an 83% Increase in Revenue to $7.0 Million for the Quarter ended March 31, 2019

HALIFAX, May 8, 2019 /CNW/ - GoGold Resources Inc. (TSX: GGD) ("GoGold", "the Company") reports an 83% increase in revenue to $7.0 million over the previous quarter and a net income of $2.4 million for the three months ended March 31, 2019. The Corporation closed the quarter in a strong financial position with $16.0 million in cash and marketable securities. (All amounts are in U.S. dollars).

The Corporation maintains a strong balance sheet and no debt. During the quarter ended March 31, 2019 the Companies marketable securities in Metalla Royalty and Streaming Limited increased in value by $3.7 million. The Corporation is in a strong financial position and has the cash to explore the newly acquired Los Ricos project. The Company has budgeted $4.0 million on exploration for the remainder of calendar 2019 to complete a total of 10,000 meters of drilling.

"The drill results to date at Los Ricos have been some of the best in my career," stated Brad Langille, President and CEO. "The high grades and wide zones identified thus far are less than 150m from surface. Our team has reviewed thousands of historical documents dating back 100 years which has allowed us to develop high probability targets for drilling."

Production increased each month during the quarter for a total of 424,210 silver equivalent ounces that generated revenue of $7.0 million on the sale of 475,921 silver equivalent ounces at an average realized price of $14.77, and at an adjusted cash cost of $10.11. The Company sold more than produced due to a shipment in transit at the end of the previous quarter. The difference between produced and sold will be much less in future quarters.

During the quarter ended March 31, 2019 the Company stacked 478,874 tons of ore, which is an increase of 35% over the previous quarter, representing 640,000 recoverable silver equivalent ounces. Stacking rates are expected to increase further for the quarter ended June 30, 2019. Production continues to be strong and the Company expects another strong quarter of production growth.

"Production at Parral continues to improve and the team has done an excellent job increasing tons stacked on the heap leach pad which will lead to continued improvements in production," stated Langille.

Summarized Consolidated Financial Information

Three months endedMarch 31

Six months endedMarch 31

(in thousands USD, except per share amounts)

2019

2018

2019

2018

Revenue

$

7,030

$

5,403

$

10,881

$

11,235

Production costs, except amortization and depletion

4,812

3,605

8,153

6,674

Mine site EBITDA1

1,861

1,798

1,239

3,017

Net income (loss)

2,437

(41)

10,591

28,454

Basic net earnings per share

0.02

(0.00)

0.06

0.17

1Earnings before interest, taxes, depreciation and amortization

Key Performance Indicators1

Three months ended March 31

Six months ended

March 31

2019

2018

2019

2018

Total tonnes stacked

478,874

439,376

834,487

801,310

Silver equivalent production2

424,210

417,191

749,358

809,597

Adjusted AISC per silver equivalent ounce2,4

$

13.61

$

15.97

$

14.76

$

15.31

Adjusted Cash cost per silver equivalent ounce2,4

$

10.11

$

10.67

$

10.91

$

10.94

Adjusted Cash cost per silver ounce3,4

$

7.39

$

7.47

$

8.19

$

7.69

Realized silver price

$

14.77

$

15.99

$

14.56

$

15.95

1Key performance indicators are unaudited non-GAAP measures

2Gold is converted using actual realized prices

3Using Gold as a by-product credit

4Adjusted for net realizable value adjustment, see reconciliation in MD&A

This news release should be read in conjunction with the condensed consolidated interim financial statements for the three and six months ended March 31, 2019, notes to the financial statements, and management's discussion and analysis for the three and six months ended March 31, 2019, which have been filed on SEDAR and are available on the Company's website.

Mr. Robert Harris, P.Eng. is the qualified person as defined by National Instrument 43-101 and is responsible for the technical information of this release.

About GoGold ResourcesGoGold Resources (TSX: GGD) is a Canadian-based silver and gold producer focused on operating, developing, exploring and acquiring high quality projects in Mexico. The Company's Parral Tailings project produces silver and gold at a low cash cost. Headquartered in Halifax, NS, GoGold is building a portfolio of low cost, high margin projects. For more information visit gogoldresources.com.

CAUTIONARY STATEMENT:The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to exemptions therefrom. This release does not constitute an offer to sell or a solicitation of an offer to buy of any of GoGold's securities in the United States.

This news release may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the Parral tailings project, the Los Ricos project, future operating margins, future production and processing, and future plans and objectives of GoGold, constitute forward looking information that involve various risks and uncertainties. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the continuance of GoGold and its subsidiaries as a going concern, general economic and market conditions, mineral prices, the accuracy of mineral resource estimates, and the performance of the Parral project. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.

Important factors that could cause actual results to differ materially from GoGold's expectations include exploration and development risks associated with GoGold's projects, the failure to establish estimated mineral resources or mineral reserves, volatility of commodity prices, variations of recovery rates, and global economic conditions. For additional information with respect to risk factors applicable to GoGold, reference should be made to GoGold's continuous disclosure materials filed from time to time with securities regulators, including, but not limited to, GoGold's Annual Information Form. The forward-looking information contained in this release is made as of the date of this release.

Cautionary non-IFRS Measures and Additional IFRS Measures The Company believes that investors use certain non-IFRS and additional IFRS measures as indicators to assess mining companies. They are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with IFRS. Non-IFRS and additional IFRS measures do not have a standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other companies.

Additional IFRS measures that are presented on the face of the Company's consolidated statements of comprehensive income include "Operating income (loss)". These measures are intended to provide an indication of the Company's mine and operating performance. "Cash flow from operating activities before changes in non-cash working capital" is a non-IFRS performance measure that could provide an indication of the Company's ability to generate cash flows from operations, and is calculated by adding back the change in non-cash working capital to "Net cash used in operating activities" as presented on the Company's consolidated statements of cash flows. Per ounce measures are calculated by dividing the relevant mining and processing costs and total costs by the ounces of metal sold in the period. "Cash costs per ounce" and "all-in sustaining costs per ounce" as used in this analysis are non-IFRS terms typically used by mining companies to assess the level of gross margin available to the Company by subtracting these costs from the unit price realized during the period. These non-IFRS terms are also used to assess the ability of a mining company to generate cash flow from operations. There may be some variation in the method of computation of these metrics as determined by the Company compared with other mining companies. In this context, "cash costs per ounce" reflects the cash operating costs allocated from in-process and dore inventory associated with ounces of silver and gold sold in the period. "Cash costs per ounce" may vary from one period to another due to operating efficiencies, grade of material processed and silver/gold recovery rates in the period. "All-in sustaining costs per ounce" include total cash costs, exploration, corporate and administrative, share based compensation and sustaining capital costs. For a reconciliation of non-IFRS and IFRS measures, please refer to the Management Discussion and Analysis dated May 8, 2019, for the three and six months ended March 31, 2019 as presented on SEDAR.